HDTV Best Price Blog

This year’s marquee specification is a refresh rate of 120 Hertz, which manufacturers claim make movies and video appear smoother on HDTVs. How much is true and how much is hype?

If you’ve been walking through the local electronics store, or browsing HDTVs online (and I’m sure you have), you may have noticed a lot of attention being payed to “120 Hertz,” that is, the refresh rate of some newer model televisions. The refresh rate refers to the frequency with which the image on the screen is updated, or re-drawn. “120 Hertz” means that the image you are looking at on the HDTV is updated 120 times a second.

In the past, most TVs had refresh rates of either 30 hertz (30 or 60 frames per second). While this was fine for viewing broadcast or cable television shows that are filmed at 30 frames per second, it created some minor issues when watching motion pictures, which are filmed at 24 frames per second. In order to make the 24 frames of film match with the 30 frames of the TV, a process known as “3:2 pulldown” was employed, in which the extra frames were filled with repeated images. In scenes with high motion, the imbalance of the repeated frames could cause the movie to look jerky and not smooth. Whether it’s truly noticeable is up for debate: true videophiles claim to be able to detect the problem, while the average TV viewer might never notice that anything funky is happening to their display.

For those who are bothered by the “3:2 pulldown,” 120 Hertz is a welcome solution. 120 is a multiple of both 24 and30, meaning that the framerate of a film and the framerate of a TV show can be repeated evenly, and both types of video content will look its absolute best.

Is this really important? Is it worth spending a few extra bucks to get get? That depends on what kind of consumer you are. If you read the above information and thought “I’ve never noticed anything weird about watching movies on my TV,” then maybe you wouldn’t really care if you had a 120 Hz HDTV. In any case, now that you know what 120 Hertz means, you can shop more effectively and with a greater sense of what it is you’re looking at, and what the stores are trying to sell you.

What’s the deal with Vizio, the nation’s leading manufacturer of LCD TVs? Who are they and where did they come from?

The most successful manufacturer of flat-panel, high-definition TVs in North America isn’t who you might expect. It’s not Sony, or Samsung, or any other established, brand name manufacturer that might come to mind. It’s a small upstart electronics company out of California that has discovered a potent and powerful formula that has their HDTVs flying off the shelves.

Vizio: Making Things Easier for Consumers

Vizio has only been making televisions for a few years, but they’ve created quite the stir in the industry. Their approach to selling HDTVs is simple: provide the absolute lowest price and make sure people see the TVs. With prominent placement in high-traffic retail outlets like Wal-Mart, Sears, K-Mart, and Circuit City, Vizio has provided consumers who are interested in an affordable, budget HDTV an attractive option, especially when they get to look at it side by side with the more expensive name brands. Once shoppers compare the image quality and the price tags, it’s no wonder that they opt for the less expensive choice.

Consider the Whole Picture

Something for consumers to consider, however, is that while the price differences between Vizio sets and brand name televisions may be quite stark in a retail store, online, it’s a whole different story. HDTVs from major manufacturers can often be found between 20 and 30% cheaper online, compared to in-store prices at big box stores like Best Buy, Circuit City, and Wal-Mart. Shipping is often free or quite affordable, as well. Vizio televisions, though an excellent affordable option in the store, isn’t always the absolute lowest price if online merchants and prices are considered.

Vizio televisions are not widely available online. They’ve made in-store sales their primary focus, so unfortunately, their TVs do not benefit from the low overhead of online sales. Imagine how much cheaper their sets would be if they did!

Consumers should investigate Vizio further, compare the quality and cost of their HDTVs with those of more traditional manufacturers, but be sure to compare them not just against the in-store prices of competitors, but the online prices as well. You may find some surprising deals that are more attractive, more substantial, and more satisfying.

Moving Away From Their Roots

Despite the success that Vizio has had as a budget brand, they seem to be moving away from that market. Perhaps they wish to be taken seriously or considered in the same class as Sony and Samsung. Whatever the reason, it’s a somewhat troubling development. If you look at Vizio’s website, the prices on their available HDTVs are in line with what one would expect from bigger brands; finding a bargain there isn’t easy. For years now, Vizio has been forcing big brands to come to their level, to slash prices in order to compete with the remarkable deals Vizio has been able to provide. Now that Syntax-Brillian and their Olevia line of HDTVs is long gone, Vizio is the only significant budget HDTV manufacturer out there. If they move away from the strategy that made them so popular, we may see stagnation in HDTV prices in general. That’s not good for consumers.

Take a look at the fascinating new technology that will be included in high-definition televisions in the coming year.

The major television manufacturers have announced their opening salvos for 2009 at the Consumer Electronics Show, giving consumers a glimpse of what’s in store for the future of high-definition television. Some of the new features and technologies will bring consumers greater convenience, others may simply complicated thing, and a few are prototypes meant for future models. We’ll give you a quick rundown of what we’ve seen and what we think about it all.

Refresh Rates Now Twice as Refreshing

Refresh rates of 120Hz have been all the buzz over the past year, and the quest for smoother, more realistic pictures has not let up. This year, several manufacturers have introduced high-definition televisions with refresh rates of 240Hz. These TVs include models from the Samsung 7-series and 8000-series, LG’s LH55 series, Vizio’s 55-inch VF551XVT1A, and the Sony’s BRAVIA KDL-52XBR7.

We’ve always been skeptical about the benefits of plain old 120Hz televisions. While they do provide improvements to the smoothness of the image, their overall benefit seemed exaggerated. They certainly did not warrant the extra cost over a non-120Hz 1080p television. The same holds true of these 240Hz televisions. Early reports from those who have had an opportunity to evaluate 240Hz models indicate that much of this is simply marketing hype, and like 120Hz, does not significantly improve the picture in a detectable way. Basically, you’d be paying for a technological benefit that your eye cannot really perceive.

Our verdict: don’t shell out the extra cash for 240Hz. If it comes on a reasonably priced television, by all means, get it; it can’t hurt. But don’t go out of your way to attain what is, at best, a marginal benefit.

Sharp’s Built-In Blu-ray Disc Player

Why buy two devices when you can buy just one? Sharp has unveiled a series of HDTVs that feature a built-in Blu-ray disc player. The TVs feature a little bulge that houses a side-loading Blu-ray player. This solves one of the big problems of flat-panel televisions: where to put your set-top boxes when your set has no top!

The Blu-ray disc player will be featured on certain Sharp AQUOS televisions in sizes between 23 and 52 inches, and are marked with ‘BD’ in their model numbers, specifically the LC-52BD80U, LC-46BD80U, LC-42BD80U, LC-37BD60U, LC-32BD60U. The BD player will also handle CDs and DVD discs (with up-scaling) and integrates seamlessly with an on-screen on-load interface.

This is an intriguing step for Sharp, and moving toward convergence is a potentially smart move, saving consumers the trouble of figuring out which Blu-ray disc player they should get to go along with their new TV. These models will be available in January and February.

Internet-Enabled HDTVs: Netflix Streaming

HDTV manufacturers realize that most consumers want their flat-panels to be a part of their Internet experience, whether it’s streaming video or simply interacting with other devices. Both LG and Vizio announced televisions capable of directly accessing Netflix streaming videos without the use of an additional set-top box. All you need is an Ethernet connection (for the LG) or a wireless connection (for the Vizio), and you’re all set to stream all the Netflix movies you can handle. The Vizio also supports other online streaming services, like Blockbuster, Pandora, Rhapsody, and Amazon, among others. Vizio will be releasing these sets under the “Connected HDTV” label, while LG uses the term “Broadband HDTVs.”

A few simple adjustments can dramatically improve your picture quality.

If you’ve just unpacked your brand-new high-definition television and are feeling a little underwhelmed, you’re not alone. Plenty of consumers are dazzled by the vivid, high-energy displays of HDTVs in their local retail store and later disappointed by the dull, flat, lifeless images they see in their living rooms.

But don’t return your new set just yet. Usually, all it needs to display high-definition images with the clarity and brilliance you expect is a little fine tuning. You don’t have to be a rocket scientist to achieve a pleasing HDTV experience, but a little preparation and research can make the difference.

Poor video connections are the root of most beginner HDTV problems. How you connect your television to its video source–be it a cable or satellite set-top box or Blu-ray disc player–is crucial. Make sure your video source has outputs for either HDMI or component cables. These are the best ways to transmit high-definition content to your television. HDMI, which stands for high-definition multimedia interface, is the best-quality digital connection. It carries video and audio over a single wire and will transmit full HD content. Component cables have three connectors on either end, and they are color-coded red, green and blue. They are a valid, analog alternative to HDMI cables and will provide excellent high-definition video. It is important to read the manual for either your TV or your video source, as some devices will not accept or provide 1080p content over component cables.

Make sure you don’t overpay for HDMI cables. Salespeople in retail stores will attempt to push premium HDMI cables from brands like Monster on unsuspecting shoppers. A 6-foot Monster HDMI cable could cost between $80 and $130, depending on the details. Those prices are patently absurd, and Monster’s claims of superiority are specious, at best. Digital cables made to the HDMI specification are virtually identical. Monster’s extra cost pays for fancy packaging and slick marketing, but it won’t buy you better picture quality. Consumers should not spend more than $10 or $15 on a 6-foot HDMI cable, and even cheaper prices can be found on Amazon or from specialty sites like Monoprice.com.

Connections are just the first step, however. It’s important to adjust your television’s picture settings to achieve a balance that appeals to your eye. Out of the box, a television isn’t set up to look good in your living room. It’s configured to appear eye-catching and appealing in a store, and usually set to a preset picture profile called “Vivid” or “In Store.” This setting dials up the white levels and brightness, so a TV looks better amidst a sea of fluorescent lights and competing screens. Clearly, this is not the best configuration for your living room.

You could simply change the picture profile to something different, like “Normal” or “Movie,” or you could dig into the fundamental picture controls: brightness, contrast, color and tint. Pop a movie you’re familiar with in, one that you know has a variety of dark, light and colorful scenes. As you watch, pause the film in one of these scenes and adjust the proper setting until you find a level that you feel makes the picture look right. In dark scenes, focus on the brightness control, which adjusts the TV’s black level; for bright scenes, manipulate the contrast setting, which handles whites. Colorful scenes are the domain of color and tint.

Room setup can play an important role in how your HDTV looks, as well. It’s important to make sure your couch is at an ideal viewing distance from the TV set, a distance roughly 2.5 times the diagonal size measurement of the display. Too far away and you’ll miss out on the high-def detail, too close, and you’ll be treated to a pixilated picture. Moving your lamps and adjusting your lighting helps too, especially if you have a glare-prone plasma set.

One of the most confusing issues for new HDTV owners is the difference between standard-definition and high-definition television channels. While HDTVs will provide extraordinary detail and excellent image quality when watching HD channels, they will, in most cases, make television on standard-definition channels look worse. That’s because the higher resolution of an HDTV makes the flaws present in SD video more apparent. If you want to make the most of your HDTV, you’ll need to watch HD channels. On cable or satellite services, HD channels are usually tucked away in the upper numbers. For example, the HD counterpart to standard-definition channel 7 is probably found on channel 807. Viewers who get digital TV over-the-air would probably find it on channel 7.2. Consult your local listings to make sure.

If you absolutely must watch a standard-def channel, do not use the “stretch” or “zoom” features on your TV’s remote control. Stretch fits the boxy 4:3 aspect ratio of SD video to the TV’s 16:9 widescreen aspect ratio, eliminating the black pillar bars many people find irritating. Zoom eliminates the bars, but it also cuts off the top and bottom portions of the content. While these may get rid of one annoyance, they present another. Stretching distorts the video lengthwise, making people look unusually wide. Both options exaggerate the flaws in SD content even further.

Taking some time to check and double-check your television’s setup could save you from returning a perfectly good HDTV and missing out on the excellent image quality you so desire. With a few simple tweaks and some thoughtful preparation, you should have no trouble tuning in an impressive picture.

Thinking of buying a new television as the U.S. moves to digital TV? Be smart–and ask these questions.

High-definition televisions continue to be a big item on many shoppers’ lists, especially as the U.S. moves toward closing down its analog television delivery service next February. But buying these sets is not quite the same as buying the old traditional tubes. If you are getting ready to plunk down money for a new set, it is really worth your time to do your homework–both online and in person–to figure out which set will be right for you.

Getting up close and personal with the potential TV of your dreams at a local store seems like the best way to cut through the confusion and find a TV that looks good. But don’t always believe your eyes.

What you see on a television screen in a big box store may look totally different when the same set shows up in your home. On top of that, the retailer is bombarding you with all sorts of information about allegedly “essential” specifications that you may not fully understand. A little preparation will go a long way to making your shopping experience more comfortable. Armed with the right questions and a little insider’s knowledge, you’ll be able to spot the set that will be right for you.

Before you even begin your search, you need to understand two essential bits of information: the different types of HDTVs and the different image resolutions that are available.

Liquid crystal display TVs are now the most common flat-panel HDTV technology. They are lightweight, energy-efficient and available in all sizes. They are slowly replacing plasma televisions, which, although an older technology, are still a very competitive option.

Plasmas are very affordable and offer a more cinematic experience, as they can display the color black more accurately than most LCDs. On the flip side, they are very heavy and use a lot of energy. The third type, digital light projection, is a rear-projection technology that allows for tremendous screen sizes at bargain prices. These sets are very thick (12 to 14 inches deep) and have shallow viewing angles. All will provide excellent high-def entertainment. Which one is best for you will depend on your needs and desires.

High-definition resolution is described in two ways, namely, as 720p or 1080p. These numbers refer to the number of horizontal lines of pixels present on the screen. More lines mean more pixels. More pixels mean a higher level of detail.

But here’s the catch: Just because 1080p technically offers more potential detail, that does not mean it’s necessarily better than 720p. For televisions under 50 inches, the extra pixels that come with 1080p resolution are overkill. A 720p set will look just as good.

Now that you are familiar with the basics, you can start evaluating HDTVs in the wild. There are a handful of ways that stores can influence how a screen will look to you–and they might look different once you bring the sets home.

Fluorescent lighting, for instance, can make the screens on the display floor look pale and lifeless in contrast with how they will look in your reasonably lit living room.

Then there is the fallacy of proportion: A set that will be plenty big for your living room may look tiny in a showroom surrounded by gigantic sets. It helps to know precisely what size screen will best fit in your home. (And if you plan on hauling the set home in your car, do make sure you’ll have enough room to fit the screen plus some bulky packing materials.)

On the other hand, if you are trading up from a standard definition screen, you will need to find an HDTV with bigger measurements than your existing set. That’s because the size of a television is based on the length of the diagonal distance across its face. High-def TVs are more rectangular than their analog counterparts. That means it will take a 32-inch HDTV to give you a picture height comparable to a 27-inch standard TV.

And the savvy consumer knows that sometimes stores may resort to sleight-of-hand moves to try to coax consumers to buy what retailers want to sell–rather than what consumers want to buy.

Customer Ray Pitton of Palm Beach Gardens, Fla., for instance, was drawn to his local Circuit City (nyse: CC - news - people ) by the promise of a great deal on a 42-inch Vizio plasma set. When he arrived, the store did not have the advertised model available. The salespeople had to be coaxed into even turning on a similar TV.

“When they turned it on, it was showing a movie that was not on the other display sets,” says Pitton. “When we asked to see what the other sets were showing, they said their contract with Vizio only allowed them to show a certain video.” That’s when he realized the low price was just a come-on to get customers in the store so they could try and sell something else.

Salespeople, while helpful, are not there just to be a resource for consumers. They are there to sell televisions and make money for the store. Nowhere is this more apparent than when salespeople try to foist unnecessarily overpriced high definition multimedia interface cables on trusting consumers who have decided to purchase an HDTV. Too often, customers end up paying more than $100 for a six-foot Monster brand HDMI cable when a $10 no-name brand would be sufficient. Say no to in-store cables and check Amazon.com (nasdaq: AMZN - news - people ) or Monoprice.com for reasonably priced digital HDMI cables.

There are any number of stratagems that retailers use to make some televisions look more appealing than others. (See “15 Questions You Must Ask Before Buying An HDTV.”)

You know that lovely bright picture you see on the screens on the showroom floor? The smart consumer will check and see exactly where the source is coming from: Is it a dedicated video signal? Is the signal shared among multiple screens? It turns out that splitting the signal could reduce its strength and make a powerful set look washed out. OK? Consumers should look behind the boxes and check out what kind of cables are connecting the television to the video source. Grab the remote control yourself and fuss with the display settings to see if you can improve the picture quality.

The bottom line: It’s not just about the price. There is a bagful of tricks that unscrupulous sellers can use to make some TVs look more or less appealing than others. Do your homework before you head into the store–and then go armed with smart questions.

There’s a misconception that high-definition and high prices must go hand in hand. That’s simply not the case, especially in these post-holiday months, when television manufacturers and retailers are looking to clear out stock to make room for new models.

Great HDTV bargains are out there, waiting to be picked up–and not just on stripped-down, obsolete sets. Impressive, brand name televisions with excellent features can be found at incredibly low prices. All you need to know is what to look for.

There are a few hard and fast rules about TV bargain hunting for shoppers to remember. The first is that plasma televisions will always be cheaper than LCDs. For example, a 52-inch LCD television with 1080p from Samsung bears a suggested retail price of $1,999. A comparable 50-inch Samsung plasma with the same resolution has a suggested retail price of $1,799.

In Pictures: 10 HDTV Bargains

Don’t think that the difference in price necessarily represents a difference in picture quality; plasmas and LCD TVs are actually on par in that respect, and in certain situations, like watching movies, plasma has an edge. The price differences are attributable to factors such as weight, power consumption and screen glare. In these areas, LCD outperforms plasma.

The second rule is that televisions with 720p resolution are always cheaper than TVs with 1080p resolution. Sony’s (nyse: SNE - news - people ) 32-inch KDL-32XBR6 features 1080p and has a suggested retail price of $999; its 720p counterpart, the Sony KDL-32L4000, is just $599. The higher number of pixels presented on 1080p sets drives up the price, but in reality, they offer no substantial benefit to viewers on displays 50 inches or less. If you’re looking for ways to cut costs to the minimum, picking 720p is a good way to do that.

With those two rules in mind, it stands to reason that a plasma television with 720p resolution would be the most cost-effective HDTV purchase. At 50 inches, the Panasonic Viera TH-50PX80U ($899) stretches 720p to its limit, but owners report being very pleased with its resolution. Only the most nitpicky videophiles could find fault with such a large and affordable television. Like all plasmas, the TH-50PX80U benefits from supremely accurate black tones, making contours and contrasts more vivid and defined.

If you’ve still got a craving for top-of-the-line features like 1080p and the much ballyhooed 120Hz refresh rate, don’t worry–there are low-cost options available here too. The 42-inch Sharp Aquos LC42D85U LCD TV ($1,076) has those features for well below what one would expect to pay for such powerful specs.

The hype behind 120Hz says it makes images smoother and less prone to motion blurring than more common 60Hz HDTVs. Whether it works or not is in the eye of the beholder. It is by no means an essential element of a high-definition television, but if you’re determined to have the absolute latest innovations, at least you can save some money, too. The 40-inch Sony KDL-40W4100 ($1,187) LCD TV also features 1080p and 120Hz at a similar price point.

Beyond the type of TV and the resolution, there’s another premium feature that can be eliminated to save money: the brand name. When you purchase a television from Samsung, Sharp or Panasonic, you’re also buying the peace of mind that comes with a well-known brand with a good reputation.

In contrast, less-known television manufacturers often slash prices as a way to stand out in a crowded and competitive marketplace. Those TVs can be very affordable, but require a leap of faith on a company whose track record may be obscure or unfamiliar.

But it’s not always a bad bet. Vizio, for instance, started out as a no-name brand selling low-cost HDTVs at big-box retailers. Today, it’s a major force in the North American HDTV market. Although Vizio’s ascent in popularity has also led it to expand features and raise prices, bargain models are still available. The Vizio VW37L ($679) is a 37-inch LCD with 720p resolution and not much else. It’s simple, but gets the job done at the right price.

Other lesser-known TV brands like Westinghouse and Dynex (which is actually a Best Buy (nyse: BBY - news - people ) store brand) have competitive models that consumers should investigate. Pay particular attention to the Westinghouse VK-40F580D, which features a built-in up-scaling DVD player as a bonus.

High-definition television is no longer the domain of the wealthy or extravagant. Budget-conscious consumers can enjoy big-screen entertainment as long as they shop smart and keep their eyes peeled.

Washington, D.C. (February 8, 2009) — Pioneer, the maker of high-end Plasma High-Definition TVs, told Reuters last week that it’s considering leaving the TV business entirely.

The company is projecting a loss of $848 million for the year ending March 31, which would be its fifth consecutive annual loss

“There is a whole spectrum of possibilities with withdrawal on one end, in-house development and production on the other and sales of procured TVs somewhere in the middle,” a Pioneer spokesman told the news service.

From Pioneer’s ‘Black is Beautiful’ ad campaign.

Several other news reports, however, say Pioneer has decided to exit the TV business and bundle its DVD/Blu-ray business into a join venture with Sharp.

Pioneer has carefully crafted a reputation in North America for selling expensive, but exquisitely made Plasma HDTVs. Some high-def enthusiasts swear by them, saying they offer the best picture on the market. (Pioneer only makes LCD sets for the European market.) However, the sets are often hundreds of dollars more than comparably-sized models from rival companies.

Reuters notes that Pioneer captured just 5.9 percent of the Plasma TV market share in the first three quarters of 2008, badly trailing LG, which had 15.5 percent, Samsung, which had 22.8 percent and top-ranked Panasonic with 37.2 percent.

Here’s your chance to score a 52-inch LCD for less than a grand.

You missed your chance to nab a big ol’ TV in time for the Super Bowl, but March Madness is just around the corner (go Spartans!).

Here’s a pretty sweet deal to satisfy your hoop dreams, Lost lust, and more: CompUSA has a 52-inch Vizio VX52LF LCD HDTV for $999.99.

That’s a mighty big screen, folks. It’s a refurbished model, meaning that its warranty expires after just 90 days. But given that new 52-inchers routinely sell in the neighborhood of $2,000, I’d say it’s a risk worth taking.

The VX52LF is a 1080P LCD with three HDMI inputs, two component inputs, and a universal remote that can control a VCR, DVD player, and a cable box.

Too good to be true? Well, maybe. I can’t find any trace of this model on Vizio’s product pages (though it is listed in the Support section), and reviews are few and far between.

As it happens, I’m in the market for a new TV, and I’ve been seriously eyeballing this one. Also in contention: Vizio’s 47-inch GV47LF, which CompUSA has for $749.96. It’s also a refurb, but there are reviews aplenty, and they’re mostly stellar.

Decisions, decisions. Either set will run me $99 for shipping. Is it worth $250 to make the jump from 47 inches to 52? That’s the kind of question that keeps me up at night. If anyone owns either model, please hit the Comments pronto, and share your thoughts, please.

Westinghouse’s TX-42F450S 42-inch LCD

Westinghouse apparently missed the memo that the holiday shopping season is over. Unless it considers Valentine’s Day more of a guy’s holiday (hey, if you’re gonna give diamonds, maybe you’ll get an LCD).

The company has unveiled its new affordable, full high-def resolution LCD TV—the 42-inch TX-42F450S the features, among other things, a tidy $699 MSRP.

We know you might be thinking without the Sharp, Sony or other major label it’s more cubic zirconia but the specs have this 42-inch set looking like a diamond in the rough if you’re in the market for a budget-friendly TV.

Features include:

• 1080Pure technology and four HDMI connectors
• 1000:1 contrast ratio
• 176-degree viewing angle
• 8-ms response time
• Preset and custom video modes

And of course there’s that sub-$700 pricing spec, too, if you’re into that whole saving money thing. We’d say keep ‘em coming, Westinghouse!

Technorati Tags: 1080p, 42 inch, LCD, Westinghouse

Feb. 6 (Bloomberg) — Sharp Corp., Japan’s biggest maker of liquid-crystal-display televisions, will post its first loss in more than five decades and cut 1,500 temporary jobs because of falling sales of the devices.

The net loss will probably be 100 billion yen ($1.1 billion) in the 12 months ending March 31, Osaka-based Sharp said today. The forecast is worse than a 57.1 billion yen loss median of seven analyst estimates compiled by Bloomberg in the past four weeks.

Sharp joins Sony Corp., Panasonic Corp. and NEC Corp. in forecasting losses and cutting jobs as the global recession curbs demand for consumer electronics. Global LCD-TV sales will fall 16 percent this year to $64 billion, the first drop in the industry’s history, according to researcher DisplaySearch.

“The forecast reflects the rapidly worsening business environment in the October-December period and the company clearly expects a similar degree of deterioration in the current quarter,” said Yoji Takeda, who manages about $1.1 billion at RBC Investment (Asia) Ltd. in Hong Kong. “The situation may improve a bit in the coming fiscal year, but it’s highly questionable whether Japanese manufacturers like Sharp can make a profit.”

The loss would be Sharp’s first for a fiscal year since the company’s shares were listed on the Tokyo Stock Exchange in 1956. The company on Oct. 6 projected 60 billion yen net income and posted profit of 101.9 billion yen in the year-earlier period.

LCD-TV Sales

Sharp forecast sales of LCD TVs will fall 10 percent this fiscal year to 730 billion yen even as the number of sets sold increases 21 percent to 10 million.

“The decline in LCD-TV prices was so steep that it pushed our business into the red, and was so sharp that our cost-cutting efforts couldn’t keep pace,” Tetsuo Onishi, a Sharp director in charge of finance and accounting, told reporters in Tokyo.

The deficit includes 50 billion yen in restructuring costs and a one-time charge of 43.3 billion yen to reflect the decline in the value of shareholdings, Sharp said.

Sharp is the largest shareholder of Tokyo-based Pioneer Corp., a flat-panel TV maker, with a 14.3 percent stake. Pioneer shares declined 84 percent in 2008.

Sales will probably decline 15 percent from a year earlier to 2.9 trillion yen, less than the previous projection of 3.42 trillion yen, Sharp said. The operating loss, or revenue minus the cost of goods sold and administrative expenses, may be 30 billion yen, missing the earlier estimate of 130 billion yen profit.

Closing Production Lines

Sharp said in December it will close by September production lines at two plants in western Japan which make LCD panels for use in mobile phones and personal computers. The company on Jan. 29 agreed with Sony to delay forming a planned venture to make LCD panels by about a year to March 2010. The two companies are now in talks to finalize details of the venture, which will be decided by June 30.

Sony, the world’s second-biggest consumer-electronics maker, last month forecast a record operating loss of 260 billion yen and is cutting 16,000 positions by March 2010. Larger rival Panasonic this week projected a 380 billion yen net loss and announced 15,000 jobs will go. NEC, Japan’s largest personal- computer maker, said on Jan. 30 it will eliminate more than 20,000 jobs and expects to post a net loss of 290 billion yen this year.

Olympus Forecasts Loss

Separately Olympus Corp., a Japanese maker of digital cameras and the world’s biggest manufacturer of endoscopes, reversed its full-year forecast to a 45 billion net loss from 19 billion yen profit as digital camera prices drop and the stronger yen erodes overseas earnings.

Sales of digital cameras dropped 26 percent to 172.7 billion yen in the nine months ended Dec. 31 and will probably decline 32 percent to 201 billion yen for the year, the Tokyo based company said. Olympus generated about 63 percent of its sales in the nine-month period. A stronger yen reduces the value of overseas earnings when converted into local currency.

In the three months ended Dec. 31, Sharp posted a net loss of 65.8 billion yen, compared with 29.5 billion yen profit a year earlier, the company said in a separate statement.

Sales in the quarter fell 20 percent to 735.1 billion yen, while operating loss in the three months was 15.8 billion yen, a turnaround from 51.9 billion yen profit a year earlier.

Sharp rose 4.5 percent to close at 742 yen in Tokyo trading before the company’s announcement. The stock dropped 68 percent last year, more than the 54 percent decline by the Topix Electrical Appliances Index.

Technorati Tags: plasma TV, Sharp